COVID-19’s Impact on the Seattle Lodging Market

HVS | December 16, 2020

December 16, 2020 -- Amid a worldwide pandemic, the lodging industry is facing a downturn that is greater than the past two lodging-market declines combined. During the Great Recession, Metro Seattle occupancy fell roughly seven points from 68.1% in 2008 to 61.6% in 2009; this year, we forecast occupancy to drop from the 2019 benchmark of roughly 74% to 37%, reflecting a 50-point correction. Average rate declined from $127 in 2008 to $112 in 2009, an 11% drop; this year, we forecast ADR to fall 36% ($161 to $104). 2020 Major Factors Virtually all significant corporate travel dissipated in 2020 given the widespread impact of the virus....